[Click e Stocks] Hyundai Glovis' 2.3 Trillion KRW Cash Equivalents

[Asia Economy Reporter Hwang Junho] Korea Investment & Securities maintained the target price of Hyundai Glovis at 260,000 KRW on the 21st.

Korea Investment & Securities stated that negative external factors such as exchange rate decline and increased logistics costs were at the expected level. Accordingly, they analyzed that the first quarter earnings would offset the unfavorable impact of the won-dollar exchange rate decline due to the favorable recovery of the upstream industries. Sales are estimated to decrease by 5% year-on-year to 4.4748 trillion KRW, and operating profit is expected to decrease by 2% to 191.1 billion KRW.

In the CKD sector, which contributes the most to profits, a decline in earnings is expected due to weakness caused by the strong won. However, they anticipated that profitability would be at the expected level as air freight costs decreased compared to the fourth quarter of last year. The logistics business is expected to maintain external growth due to an increase in finished car production volume, but overall, operating margin improvement is judged to be delayed due to increased logistics costs. In the shipping sector, bulk shipping temporarily recorded losses in the fourth quarter of last year but has now stabilized, and PCC (finished car sea transportation) has also recovered to pre-COVID-19 levels in scale. Accordingly, this year is seen as the time for Hyundai Glovis to invest in new business initiatives. Hyundai Glovis's new investments over the past three years have been significantly reduced. Cash and cash equivalents amount to 2.3 trillion KRW.